US Dollar Index scores best weekly gain since mid-Sept. as stimulus hopes stabbed

by   |  VIEW 2022

US Dollar Index scores best weekly gain since mid-Sept. as stimulus hopes stabbed

On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies had inched lower, easing off some of the week’s modest gains which had been largely galvanized by an upscaled caution over a global-scale spike in pandemic cases, while waning prospects of a US pandemic relief bill before the US November 3 Presidential election had added to further strains.

In point of fact, the American currency had experienced a tentative opening of the day, though the greenback pared some of its earlier losses following reveal of a robust rise in US retail sales in September that in effect calms down investors’ concerns over US Consumer Spending, the ‘Tree of Life’ for a scuffling US economy accountable for roughly two-third of entire US economic activity.

Nonetheless, later in the day, investors’ appetite for riskier assets grew and the US Dollar Index swung again to wind down the day 0.1 per cent lower after the American multinational pharmaceutical Pfizer Inc.

had been quoted saying in a statement that the 57th-ranked Fortune 500-listed US Corporation, in part known for its best-selling epilepsy and fibromyalgia drug Pregabalin that generated roughly $3.3 billion and $5 billion in revenues in 2018 and 2019 respectively, the earliest US filing for its pandemic vaccine would come by as early as late-November.

US Dollar Index gains 0.7% for the week

Citing statistics, despite a sell-off wave on early-morning and another on late-afternoon US trading hours, the American Dollar ended the week 0.70 per cent higher to 93.67, marking up the index’s best weekly percentage gain since mid-September, while the safe-haven Japanese Yen rose 0.2 per cent against the greenback.

Meanwhile, referring to an abrupt halt of US pandemic stimulus talks which in turn had prompted buyers to seek shelter on American currency, a senior market analyst at Western Union Business Solutions in Washington, Joe Manimbo said, “Market optimism was punctured this week to the benefit of the greenback amid a quartet of concerns over the virus, stimulus, the U.S. economy and the fast-approaching presidential election”.